Outlook 2023 Indonesia
JAKARTA KEY MESSAGES
Two new projects: Mori Tower and Autograph Tower will enter the Jakarta CBD Office market in 2023. After 2023, new supply is forecast to decline to an average of 50,000 sqm per year.
Net absorption is expected to slow down in 2023 as tenants will be in cautious in their decisions on their office premises, in anticipation of the predicted global slowdown. Vacancy is expected to remain high with the completion of large office projects in 2023 which may exceed demand.
Rents are expected to remain under pressure in 2023 due to the tough competition in a relatively ‘thin market’. Some landlords will likely continue offering very ‘generous’ discounts of their published rental rates to attract new tenants into their buildings.
The robust economy of Indonesia and smooth political
campaign process in 2023 towards general election in 2024 will maintain office demand within positive territory.
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